Bobby Singh - NFT Platform and Marketplace with Deflationary Cryptocurrency - Founder and CEO
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NFT Platform and Marketplace with
Deflationary Cryptocurrency
https://luxuryledger.io/
Bobby Singh
F o un d er a n d CEO
Luxury Ledger: NFT Platform & Marketplace Powered by Deflationary Currency on Ethereum & Binance Smart Chain
$5 $600 $58
Luxury Ledger Blockchain is an IBM partnered,
Google and TechStars winning startup that
deploys enterprise supply chain networks,
provides asset provenance and facilitates
TRILLION BILLION BILLION decentralized consumerce of luxury and retail
goods. Luxury Ledger Blockchain is a shared,
Annual revenue in the Annual loss due to Loss annually to fraudulent immutable transaction ecosystem of brands,
global luxury and retail market physical counterfeiting insurance claims retailers, insurers and consumers, providing
anti-counterfeit solution for the luxury industry.
Luxury Ledger Ecosystem
Supply Chain Management: Luxury Ledger
Counterfeiting Diverted Stolen Fraudulent integrates with existing supply chains to
goods merchandise transactions capture provenance for products that increase
consumer engagement and brand reputation.
We deploy Hyperledger and Ethereum
integrations at scale with our blockchain-as-a
service (Baas) solutions for global brands. Our
platform mitigates financial, operational and
reputational risks as every participant enjoys
systemic protection against fraud
and counterfeiting.
Verify product Share data securely Reduce friction, fraud,
origin in real time intermediaries and disputes
NFT Asset Registry: Luxury Ledger Asset Registry
secures pertinent product data on a
decentralized, global and transparent
blockchain layer. Product data and provenance
is secured on a non-fungible token (NFT) built
on the ERC-721 standard. Consumers benefit
from guaranteed trust and authenticity by
independently verifiable blockchain registry.
Precious gems Wine Luxury Goods Fine art Collectibles
Decentralized Marketplace: Online luxury sales
are expected to accelerate to several trillion
dollars by 2021. We are building a robust
marketplace tht ensures global commerce
with trust, transparency and authenticity.
Luxury Ledger marketplace mitigates risk of
counterfeiting and fraud in primary and
Easy secondary markets by providing unique, Proof
Open-Source Scalable First To
of Provenance certificates with all digital and
Integration Software Solutions Market
physical goods sold.
Leverages current supply Flexibility, security and Across luxury and In global luxury and
chain systems robust community retail verticals retail commerce
Token Sale
Token Symbol: LXRY
Public/
Token Standard: ERC-20 & BEP-20
Team Airdrops/
Private Sale Max Token Supply: 7,000,000 (7M)
And Advisor Bounty
Hardcap: $ 1,000,000 USD (1M)
Business/Technical
Presale Price: $0.50/LXRY
Marketing
Development
LXRY is the utility token that powers Luxury Ledger’s Blockchain-verification network and platform
LXRY is a data bonded token that uniquely identifies physical and digital assets
BINANCE
SMART CHAIN
LXRY is the Official Currency of Authenticity in our decentralized marketplace
Leveraging blockchain’s token distribution model to build a robust community of early adapters
Token Distribution
Max Supply: 7M | Symbol: LXRY
Deflationary Tokenomics: 3% of LXRY automatically burned/transaction
00
Table of Contents
1.0 Executive Summary: Re-inventing Luxury and Retail Commerce 3
2.0 Introduction to Blockchain and Luxury Industry 5
3.0 Luxury Industry Problems and Solutions 8
4.0 Luxury Ledger Solutions: Blockchain as a Service Solutions (BaaS) for Brands 11
5.0 Luxury Ledger Network Applied Use Cases 17
6.0 Deploying Enterprise and Public Hybrid Blockchain Networks 18
7.0 IBM Cryptographic-Anchors 25
8.0 Artificial Intelligence and Supply Chains 27
9.0 Luxury Ledger Asset Registry 27
10.0 Luxury Ledger Marketplace 31
11.0 Luxury Ledger Token Sale 34
12.0 Appendix: Top 100 Global Luxury Brands 36
13.0 Risk Factors 41
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01
Executive Summary
1.1 Re-inventing Luxury and Retail Commerce
B lockchain networks hold tremendous power in creating new opportunities, trust models and solving
existing pain points in global commerce. Like all digital transformation initiatives, blockchain networks need a
long-term, strategic, and collaborative industry approach. Luxury Ledger’s vision is to digitize the global luxury,
collectibles, and the art industry. We enable blockchain-backed business networks with supply chain manage-
ment for brands, digital product registry using Non-Fungible Tokens (NFTs) and decentralized marketplace align-
ing brands, enterprises, and consumers. As an IBM partnered startup that deploys robust enterprise blockchain
networks, our mission is to digitally capture asset provenance and facilitate decentralized commerce for the global
luxury and retail sector. Blockchain is a paradigm shift in technology with the potential to transform entire modern
industries. Similar to how the Internet changed the world by providing greater access to information, blockchain is
poised to change how organizations and consumers interact by offering trustful, efficient and secure commerce.
The benefits of blockchain in business are numerous, including reduced time (for finding information, settling
disputes, and verifying transactions), decreased costs (for overhead and intermediaries) and alleviating risk in prov-
enance (authenticity, tampering and fraud).Gartner forecasts that blockchain technology will add $176 billion busi-
ness value by 2025 and more than $3.1 trillion by 2030. Luxury Ledger Network seeks toleverages the latest proto-
col solutions developed by Hyperledger, Ethereum, Binance Smart Chain, Cardano and Polkadot communities.
Despite the often-competitive nature of different blockchain communities, the consensus amongst developers is
to focus on collaboration and advancements in the main challenge blockchain has toovercome- adoption. Our
mission is to advance the adoption of NFTs, blockchain supply chain networks and decentralized commerce. We
strongly believe that a proper integration and application of Luxury Ledger solutions will completely revolutionize
the luxury and retail market. We are building a global network that invites other interested participants including
developers and entrepreneurs to build this technology and community with us, working together to create the
global commerce platform of tomorrow.
Handling stock, transportation, trading, buying and selling goods are some of the oldest known human activities,
and as such, they’ve evolved over time with sophisticated technologies, particularly information technology. Few
realize, for example, that Enterprise Resource Planning (ERP) was launched in 1974, nearly half a century ago. The
first significant e-commerce standards were published more than 35 years ago. Such technologies accelerated
followed by web browsers, offshoring work with high-bandwidth data connections in the 90s, robotic process auto-
mation and, today, blockchain. We expect blockchain to deliver a transformational impact on businesses, especial-
ly as is relates to the luxury and retail industry. Blockchain technology can transform global commerce and
processes in the same way that TCP/IP standard facilitated the development of a distributed computer network at
the heart of the Internet. With Luxury Ledger, brands can now adopt blockchain solutions that optimize their exist-
ing supply chains processes, improve organization-wide efficiency as well as enhance brand reputation and
consumer engagement. With brands’ ability to coordinate their business network through a shared ledger, Luxury
Ledger reduces current time, costs, and associated risks for brands while improving trust, visibility and finality in
every transaction. In addition, Luxury Ledger’s technology stack decentralizes pertinent product data from supply
chains on a cryptographically recorded digital asset registry backed by Inter Planetary File System (IPFS) and the
Ethereum blockchain. Luxury and retail goods’ authenticity is captured, recorded and decentralized on Luxury
Ledger Asset Registry backed by Non-Fungible Tokens (NFT). Proof of Provenance certificates are used to estab-
lish authenticity records that are unambiguously identified and matched to physical assets. Moreover, Luxury
Ledger Marketplace will enable enterprise, consumer and peer-to-peer exchange of luxury and retail goods freely
with guaranteed authenticity and crypto commerce efficiency.
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01
Executive Summary
1.2 Supply Chain Management:
The current supply chain processes for the exchange of information are loaded with intermediaries, inefficiencies
and security fears. Through the use of enterprise blockchain networks, business processes between brands, enter-
prises and consumers can be simplified, and records can be synchronized without the need for a central authority
or costly manual reconciliations. This will assist enterprises in solving existing pain points by reducing operating
costs and disputes while strengthening their current supply chain practices. Luxury Ledger Network integrates
with existing supply chains to capture provenance for products that increase consumer engagement and brand
reputation. The Network mitigates financial, reputational and social risks as every network participant enjoys
systemic protection against fraud and counterfeiting. Enterprises can now improve, streamline and modernize their
existing supply chains.
1.3 Asset Registry:
Luxury Ledger Asset Registry secures pertinent product data on a decentralized, global and transparent block-
chain layer. Product data and provenance is secured on a non-fungible token (NFT) built on the ERC-721 standard.
Consumers benefit from guaranteed trust and authenticity backed by immutable and transparent Proof of Prove-
nance certificates and blockchain records.
1.4 Marketplace:
Online luxury and retail sales are expected to triple as a proportion of the total global sales by 2021 to several trillion
dollars. In addition to decentralizing product data from brands’ supply chains to a globally accessible asset registry,
https://market.total.exchange/
Luxury Ledger Marketplace ensures global commerce with trust, transparency and authenticity. The marketplace
mitigates risk of counterfeiting and fraud in primary and secondary markets. We are partnering, supporting and
working with our sister company, https://total.exchange/
Total Exchange in creating the world’s largest crypto-commerce marketplace.
The Luxury Ledger Network consolidates supply chain management, product provenance and decentralized
marketplace into one globally accessible ecosystem. The Luxury Ledger team understands the enormous task and
is well equipped to implement protocol and processes that have the potential to revolutionize the entire global
luxury and retail industry.
1.5 Luxury Ledger Platform Demo:
We built a collaborative, enterprise blockchain solution that digitizes current business networks and brands’ supply
chains. Luxury Ledger Blockchain captures supply chain processes, product provenance, as well as data of various
features such as temperature and location data. Brands, retailers, insurers, and consumers benefit from a guaran-
teed supply chain and product provenance with reduced friction, fraud, counterfeiting and operating costs as part
of the Luxury Ledger Blockchain. Below is our demo from Tech Stars Blockchain Edition in New York City. The
event was sponsored by Google and IBM and we are grateful to be a TechStars winner! https://www.youtube.com/watch?v=S9gkagO11c4
Luxury Ledger Platform Demo
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02
Introduction to Blockchain and Luxury Industry
I n the last 40 years, we have faced five disruptive computing paradigms (Mainframe, Computers, Internet,
Mobile and Social Networks). As the newest paradigm, blockchain technology represents the advancement of
digital money, transfer of secured information and reorganization of existing business processes. In relation to
current widespread global internet and cellular connectivity, we believe that blockchain technology could be
deployed and adopted rapidly than any of 5 previous paradigms.
2.1 Introduction to Global Luxury and Retail Consumerism
Luxury is deeply rooted in the history of the great civilizations of the ancient world: luxury goods have always asso-
ciated with wealth, exclusivity and power. The term "luxury" comes from the Latin word "luxuria", which means
sweet, exuberant life, brilliance and wealth.
For modern brands, success in the luxury market refers to the following aspects:
Excellence: Brand aura and presence:
The strongest association with luxury in the consum- By achieving excellence, Brands have built a strong
er’s mind is of excellent quality, both in product and reputation over the years and have posted their mark
service. It is the necessary condition that justifies the at the highest stage in the psyches of consumers. For
premium paid by consumers. brands seeking to achieve this status, a level of repu-
tation, trust and elegance have to be reached.
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Introduction to Blockchain Paradigm
Desirability:
A common factor in luxury products is the ability to “Luxury goods” in this whitepaper refers to goods for
produce and maintain comfort. One aspect is a strong personal use and is the aggregation of designer wear,
aesthetic appeal, modern but related to traditional footwear, luxury handbags, accessories, jewellery and
values; the second element is the high price of articles watches.The term also includes automobiles, fine
that reinforce the social symbolism of the product.
2.2 Global Luxury Market Analysis and Opportunities
Historically, luxury and retail brands lag other Rising global competition:
consumer sectors when it comes to interpreting and
Brands are driving innovation in new products to meet
applying supply chain management and digital tech-
the changing demands of customers in accordance
nologies. Advanced manufacturing capabilities, com-
with the latest fashion and lifestyle trends. Luxury is
plex supply chains and globalization have changed
expected to offer symbolic and experiential value in
industrial dynamics in the luxury industry. Brands are
addition to mere functionality. The ratio of intangible
up against tough growth challenges. Luxury Ledger
and situational utility to price is high in luxury goods.
has strategically selected luxury and retail industry as
Thus, certain distinctive features are critical to reach
the core market opportunity for the following reasons:
competitive market advantage. Critical success
factors involve premium quality, heritage of crafts-
Multi-trillion-dollar global market: manship, exclusivity, emotional appeal, global reputa-
Worldwide, the personal luxury goods market experi- tion, consumer engagement, authenticity and trans-
enced growth across all regions, driven both by more parency.
robust local consumption (up 4%) and by strong
purchases as an outcome of expanding tourism (up
6%).
Complex Industry Supply Chains:
Luxury and retail organizations need to take a more
Pre-existing methods of identifying structured supply chain management approach.
goods need innovation: Brands, suppliers and retailers are in growing need of
Serial numbers on products are common. Most luxury being in direct relationship to attain better industry and
goods have a unique authentication identifier. In addi- organizational performance. There must be a signifi-
tion, brands have started adopting NFC, RFID and cant correlation between back-end operational
holograms tags to physical assets. At Luxury Ledger, optimizations in respect to cost management and
we strive to take these current practices further and efficient resource utilizations and front-end optimiza-
securely decentralize product data on Luxury Ledger tions in respect to consumer experience and brand
Asset Registry. Additionally, we are an early supporter perception.
of IBM cryptographic anchors and verifiers in enter-
prise and consumer applications. Cryptographic
anchors are world’s smallest computers to date, From Physical Products to Digital
smaller than a grain of salt; contain several thousand Experiences:
transistors; will cost less than $.10 to manufacture; and
Luxury Ledger insights from Boston Consulting Group
can monitor, analyse and even act on data.
indicate that already today, 6 out of 10 luxury sales are
digitally influenced. Digital is an inevitable, inescap-
able business shift. The Luxury and retail marketplace
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02
Introduction to Blockchain Paradigm
are shifting from an emphasis on traditional storefront From standardization to personalization:
environments to a focal point on digital and experien-
tial environments. Brands want to assess how digital Luxury sector has expanded, and companies have
luxury makes the consumer feel. This refers to the grown by increasing the extension of its distribution
intangible quality that luxury goods possess. Con- networks and the opening of new stores in new terri-
sumers are in fact clear that they can determine the tories. During this period of physical expansion, the
future of luxury as digital, driven by global surge in emphasis was placed on the coherence and standard-
e-commerce and mobile commerce. Historically, a ization of the experience that led to generic trade and
significant challenge for luxury goods companies is to generic experiments. Consumers today are expecting
find ways of incorporating digital technology into their more rewards for their loyalty, more personalization of
products without losing their heritage or their focus products and services. Digital channels are generating
on traditional materials and methods of manufactur- a need for large-scale quality personalized content in
ing. Millennials are the most digitally influenced the luxury and retail industry.
consumers with 60% of their purchases made either
by computer or mobile devices. Moreover, this trend
is increasingly popular with all generations.
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03
Luxury Industry Problems and Solutions
3.1 Counterfeits in Luxury and Retail Industry
The global flow of luxury and retail goods has never been greater. In enterprise environments, many of the
processes designed to manage these flows are manual, paper-based, error-prone and vulnerable to counterfeit
and fraud. In addition, consumers have very limited access to independently verify authenticity, provenance or
history of interested or purchased products. In today’s global commerce, where consumers make choices based
on moral, political, reputational and economic values, the emphasis on product origin, authenticity and provenance
is crucial.
It is significant to note that counterfeiting and fraud represent a substantial economic threat that undermines inno-
vation and hinders economic development. Brands are adversely affected with economic and reputational losses
extending to intellectual property, patents, and trademark losses. Counterfeit products are often produced with the
intent to take advantage of the superior value of the imitated product. Luxury brands are seen to be high targets for
these counterfeits as customers and heavily invested firms patronize them. High-end brands are considered to be
extra vulnerable to counterfeits because consumers will most times pick a brand over its actual features even if the
elements are embedded in the values of the brand. At Luxury Ledger, we are making anti-counterfeiting our
mission and universal campaign.
Counterfeit goods also result in detrimental effects on economies due to decreased innovation, loss of revenue
and taxation, and a higher employment rate. Disturbingly, growing evidence points to a probable link between
physical counterfeiting and terrorist groups. Such groups are exploiting the easy-made money and high-profit
margin to fund terror activities around the world. Encouraged by the proliferation of Internet use and the social
networking platform, it is estimated that the size of global counterfeiting has increased significantly since the
beginning of this century. This continuous growth of the worldwide counterfeiting industry is undoubtedly alarming
and a significant cause for concern.
Fake luxury brands have ruined the status of the original luxury brands and have contributed to the loss of exclusiv-
ity and exclusivity of these brands. i.e. destroy the brand associations and perceived quality of luxury brands.
We believe that counterfeit dilemma is effectively eradicated when directly addressed at the origin of brands’
supply chains in primary markets as opposed to solely focusing on secondary market and post-sale solutions.
Luxury Ledger aims to provide enterprise solutions that strengthen existing, inefficient supply chains and enable
asset tracking and provenance of luxury goods throughout their lifecycle.
3.2 Complexities in Enterprise Supply Chains
Modern brands supply chains are long on data and short on trust. The supply chain includes all activities and infor-
mation related to the transformation of goods and services flow from the stage of the raw material to the delivery
of the final product to the consumer. Supply chain management has become a struggle for stakeholders and
participants to maintain an adequate visibility of their networks. Supply chains manage over $50 trillion of com-
merce globally. This figure includes all products and services that are produced, moved, stored and reported glob-
ally. Luxury Ledger’s vision is to transform luxury and retail supply chain management using blockchain technology
solutions. Today, the lack of collaboration between supply chain partners in the last two decades, despite tons of
fanfare, has pushed cost and waste backward in brands’ supply chains. Unlike the banking sector, there is no
universal definition of data apart from Electronic Data Interchange (EDI) documents to share. Although companies
have adapted their Enterprise Resource Planning (ERP) implementations and simplified their business processes,
data sharing has progressively gotten more complicated and costly.
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Luxury Industry Problems and Solutions
BCI Supply Chain Resilience Report interviewed 408 senior executives from 64 countries and summary of supply
chain disruptions and barriers as below:
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Luxury Industry Problems and Solutions
The current supply chains have made it cumbersome to guarantee the quality and integrity of sensitive materials
and all final products through the chain, and things get worse with the inclusion of counterfeiting, inefficient logis-
tics operations, and product distribution.
In addition, today's global supply chains are riddled with archaic, slow and expensive processes that create signifi-
cant friction along the chain and often make life difficult for network participants. At the same time, retail consumers
are demanding ever-higher levels of transparency about the origins of their products, as well as increased person-
alization. This currently puts a massive burden on brands with the need for innovative supply chain management
and practices.
3.3 Current Supply Chain Gaps in Business to Business (B2B) Processes
Let's take a quick summary of some technological developments. In the 1980s commercial internet providers
evolved. In 2001 Steve Jobs launched the iPod, giving us access to 1000 songs in our pocket. And steadily, over the
last three decades, mobile phones changed the pace of consumer commerce. In the process, the banks got bigger
and business networks grew more complex. In the last decade social networks and new business models evolved.
E-commerce and electronic shopping carts drove new forms of commercialism. These were all tremendous, mea-
surable improvements from their previous standards. However, this is not the case for business-to-business (B2B)
enterprise processes. Supply chain data inclusive of product data, images, map and location data, sentiment,
telematics, warranty– sits on the doorsteps of brands, suppliers and retailers. These signals cannot be used. There
is no place to put them in conventional enterprise technology architectures. As a result, supply chains have
become reactive rather than proactive resulting in high costs, inefficiencies, and disputes. We believe that supply
chain business networks need a complete overhaul and collaboration, which are effectively provided by block
chain driven consortium networks. Brands and retailers have made little progress in the improvement of B2B
processes as they still rely on the four-decade-old Electronic Data Interchange (EDI) processes. To further clarify,
let us analyse a purchase order scenario in a retail supply chain:
A multi-national retailer (i.e. Saks Fifth Ave, Barneys etc.) sends a purchase order, receives confirmation, schedule
lines for delivery, and prepares an advanced shipping notification with all the pallets, loads and serial numbers
including a transport order, bill of lading and some certifications. This makes several different tracking tasks includ-
ing inventory in the seller’s systems, receipts for the purchaser, proof of delivery, invoices, payment and payment
confirmations. The interesting thing here is the fact that both parties, transport providers, EDI translation services
have copies of every document in addition to numerous emails as well as hard copies. All of these are “duplicate
images” of one another, a flow of “copies of copies.” As a result, it is not surprising that all this also becomes desyn-
chronized. Furthermore, all of these records need to reference one crucial thing—the contract governing all this
activity. As these documents in electronic commerce flow more and more freely, enterprises are generating
billions, if not trillions, of copies of documents. But, the fundamental problem remains: Brands can’t reconcile them,
know which the original versions are, or control the integrity of the information being held.
Now, let us examine a sales order scenario in a retail supply chain: A large conglomerate (i.e. Louis Vuitton Moet
Hennessy) is buying leather from a supplier. There’s likely to be a complex series of channel incentives such as
volume and timing discounts, cost offsets for marketing, quotas and pricing controls that are mandated between
the parties. To get pricing conditions, meet quota and handle all the incentive structures, the conglomerate needs
transparency to the supplier’s inventory, sales-out and pricing data. Reconciliations have to be made with contracts
and trading history, and of course, the supplier will also be sending invoices with all the volume, timing, and other
discounts, marketing allowances offset etc. Imagine the amount of errors, conflicts and the reconciliations that
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Luxury Industry Problems and Solutions
occurs between different organizations to try to reach one correct stream of information. The incredible complexi-
ties in above scenarios are obvious: tracking all of inventory, purchases, invoices, shipments, serial numbers and
receipts between organizations increases exposure to substantial operation risks.
3.4 Luxury Ledger Network: Enhancing Supply Chain Management
With Luxury Ledger Network in place, such complexities mentioned become a thing of the past. Let's consider the
first case scenario where a large retailer (i.e. Harrods, Saks Fifth Ave etc.) sends a purchase order, receives confir-
mation, schedule lines for delivery, and prepares an advanced shipping notification with all the pallets, loads and
serial numbers including a transport order, bill of lading and some certifications.
Instead of sending transaction copies, purchase orders, shipping notifications, all of the participants in the network
store shareable transactions in one place called the “Master Ledger” enabled by Luxury Ledger’s enterprise block-
chain deployments. All the shareable and relevant information is secured in the blockchain-backed Master Ledger
where network participants could write and where relevant, permitted members can transparently understand the
underlying processes. There will be one source or “golden record” of transactional history in the Master Ledger.
With the Master Ledger in place, network participants are unable to modify a transaction or falsify transactions after
they have been successfully agreed upon and documented. Only authorized participants in the Luxury Ledger
Network have permissions in the writing and updating of valid transactions to the Master Ledger. This is to ensure
that the network is tamper-proof, fraud-proof with built in real-time audit trail.
04
Luxury Ledger Solutions
Blockchain as a Service Solutions (BaaS) for Brands
L uxury Ledger Network provides the blockchain platform, services, and support for enterprises blockchain
deployments. Luxury Ledger Network aims to be the backbone in global commerce by integrating solutions that
promote verifiable authenticity, provenance, proof of ownership and product lifecycle traceability. Block-
chain-based enterprise networks offer organizations the opportunity to develop new business and trust models.
These networks provide collaborative support around shared, trusted data and process automation across organi-
zations and industries. Luxury Ledger provides a blockchain platform, blockchain services, and ecosystem support
for luxury and retail organizations. Our niche-consulting services are comparable to Consensys, Boston Consulting
Group, PWC and Deloitte. Our expertise and circle of competence will primarily focus on blockchain network
deployments, supply chain technologies and product authentication services. We aim to help organizations digitize
and simplify their existing supply chains. Furthermore, Luxury Ledger will leverage our existing technology part-
ners, (IBM, Microsoft, AWS, Intel, Docker) to provide added enterprise support for our clients. Enterprise, busi-
ness-to-business supply chain data remains private/permissioned where as public product data is decentralized
on the public Luxury Ledger Asset Registry. Consumers globally have access to product provenance and can inde-
pendently verify in real-time authenticity.
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Luxury Ledger Solutions
4.1 Economic Benefits of Luxury Ledger BaaS Deployments for Brands
Brands and organizations seek Luxury Ledger for developing and deploying their blockchain solution for following
below:
Reliable blockchain partnerships with good relevant industry experience including IBM Blockchain
We offer governance and technical expertise in collaborating consortium members
Deep knowledge in hybrid private/public blockchains and preferred interoperability standards
Every on boarded client as part of the Luxury Ledger Network undergoes Luxury Ledger’s Enterprise Economic
Impact Assessment tailored to their business models and technical requirements. The following frameworks
provide a visual representation of enterprise blockchain benefits upon deployment. Benefit modules can be cate-
gorized as either creating new opportunities or solving existing challenges.
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Luxury Ledger Solutions
Luxury Ledger has created a standardized framework for delivering positive and measurable economic impact in
blockchain deployed business networks. Brands and retail organizations benefit directly with Luxury Ledger
Network Modules. At a high level the benefit modules provide two primary benefits:
1. Creating fresh opportunities
2. Solving existing processes
4.2 Economic Benefits of Enterprise Blockchain
Luxury Ledger Blockchain consists of New Opportunities Modules and Solving Existing Pain Points Modules
New Opportunities consist of Membership Revenue and Transaction Revenues Modules
Solving Existing Pain Points consist of Cost Avoidance and Savings and Efficiency Modules
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Luxury Ledger Solutions
4.3 Membership Revenue Model (New Opportunities)
Enterprises deploying blockchain generate revenue from membership charges as a benefit with their blockchain
based network solution. The factors contributing for framework are:
Number of new members added annually.
On boarding charges for newly added members.
Annual membership charges
The framework for calculating benefits associated to membership revenue is illustrated below:
Membership Revenue (New Opportunities)
4.4 Transaction Revenue Model (New Opportunities)
Enterprises expect to generate revenue by charging their blockchain clients a fee for every completed transaction
on the blockchain platform. The factors contributing the revenue are:
Number of added customers every year using the blockchain platform.
Number of completed transaction by customers every year
Charges per transaction.
Percentage charged for every transaction.
The framework for calculating benefits associated to transaction revenue is illustrated below:
Transaction Revenue (New Opportunities)
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Luxury Ledger Solutions
4.5 Cost Avoidance & Savings (Solving Existing Pains Points)
Luxury Ledger Network deployments are modular, scalable and enterprise ready with minimal infrastructure costs.
The framework for calculating CapEx and OpEx Savings is illustrated below:
Capital Expenses (CapEx) and Operating Expenses (OpEx) Savings
4.6 EFFICIENCY SAVINGS (Solving Existing Pain Points)
Enterprises describe efficiency in reducing their expenses as one of the prime benefits with Luxury Ledger
Network. Some of the examples are streamlined billing, replacement of traditional systems and tools and eliminat-
ed disputes due to inconsistent documentation. Labor costs respective to accounting and legal teams are reduced
as a result of transitioning to blockchain deployed networks. Luxury Ledger Network results in less paperwork, less
checkpoints, less conflicting records, reduced manual errors, and enhanced compliance for all consortium partici-
pants.
Framework for Projecting Efficiency Savings (Solving Existing Pain Points)
Efficiency is divided into three components:
a. Streamlined Documentation
b. Reduced Legacy System
c. Labor Cost Reduction
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Luxury Ledger Solutions
4.7 Framework for Projecting Efficiency Savings from Streamlined
Documentation (Solving Existing Pain Points)
Luxury Ledger Network is capable of reducing 100% of costs associated with conflicting records management and
dispute resolution resulting from streamlined documentation for all supply chain participants. The framework for
calculating benefits associated to streamlined documentation is illustrated below:
4.8 Framework for Calculating Savings from Eliminated/Reduced
Legacy Systems (Solving Existing Pain Points)
Organizations are capable of reducing their legacy system costs upon migrating to the Luxury Ledger Network.
The framework for calculating savings from reduced legacy systems is illustrated below:
4.9 Framework for Calculating Labour Cost Reduction (Solving Exist-
ing Pain Points)
Supply chain participants on Luxury Ledger Network benefit from savings amounting to 70-80% reduction in finan-
cial and legal resources as it relates to conflict resolution. The framework for labor cost reduction is illustrated
below:
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Luxury Ledger Network Applied Use Cases
5.1 Supply Chain Management
Supply chain management is the fastest evolving area in blockchain for business technology. Enterprises are
realizing the enormous power of blockchain networks to improve data integrity, promote efficiency, settlement of
transactions, and increase network security. The current supply chain processes for the exchange of information
are loaded with intermediaries, inefficiencies and security fears. Through the use of blockchain technology, busi-
ness processes between brands can be simplified, and records can be synchronized without the need for a central
authority or costly manual reconciliations. This assists brands in reducing operating costs and disputes while
strengthening their supply chain practices. Luxury Ledger Network integrates with existing enterprise supply
chains to capture provenance for products that increase consumer engagement and brand reputation. Luxury
Ledger Network mitigates financial, reputation and social risks as every network participant enjoys systemic
protection against fraud and counterfeiting. Enterprises can now improve, streamline and modernize their existing
supply chains.
5.2 Supply Chain Finance (SCF)
According to McKinsey & Company, supply chain finance (SCF) is a global business with $2 trillion in secure annual
payables. Furthermore, supply chain finance is projected to further rise by about 20 % in the following five years.
SCF still relies on traditional, paper-intensive processes such as bills of lading and other paper proof that goods
have been shipped. Additionally, letters of credit, title papers, quality and quantity certificates, and customs forms
to the paper trail are essential documents components of modern-day supply chains. Our goal is to help organiza-
tions digitize their supply chain finance processes that are currently locked and reduced in paper. The Luxury
Ledger SCF Marketplace will enable buyers, suppliers and financiers to be configured as follows: When a buyer/-
service provider accepts an invoice on the Luxury Ledger Network, a smart contract can be issued to the invoice
with corresponding and embedded contractual business logic (terms and conditions, payment terms etc.) The
smart contract will be available to all lending participants in the market, each of which can accept the invoice and
offer factoring services to the seller. The service supplier has several options and can choose the best available
offer. As soon as the supplier determines the best financing option, the account title is shifted from the supplier to
the financier. On the due date of the invoice, the contractual terms per the smart contracts are executed and the
buyer's invoice is charged the invoice amount, and the same amount is credited to the bank account.
5.3 Enhancing Electronic Data Interchange (EDI) Standards
The Electronic Data Interchange (EDI) is a standard format for exchanging business data that has been in existence
for over four decades, and today EDI remains the powerhouse of the supply chain. However, brands’ supply chains
remain inefficient due to the archaic EDI technology, which still relies on batch processing resulting in high latency
and time intervals. In addition, the passage and receipt of EDI require sophisticated IT personnel and resources
resulting in higher operating costs for enterprises. We believe that Luxury Ledger Network is fully capable of
replacing EDI with enterprise blockchain deployments.
The distributive nature of blockchain completely disrupts a centralized document distribution services as it makes
copies of transactions to be accessible in several locations. The security and distributed nature of information
transfer on blockchain give priority to all participants in the data track. The current entrenched EDI service providers
depend on solely managing the collection and distribution of EDI documents as the basis for their existence. Luxury
Ledger Network is poised to disrupt the old store-and-forward model that initially drove the EDI services up until
now.
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The blockchain is a single system of record which means only one access point has to be generated for each part-
ner, but the chain itself is replicated across all partner nodes in the network. Each partner in the system does not
require a unique implementation as this has previously inhibited EDI based verifications or at least EDI-based rich
transaction sets.
5.4 Enterprise Data Management
The solution to improving global supply chains revolves around data handling with an organization’s operational
context. The lack of trust and mismanaged datasets pose the current barriers for today's brands which are currently
drowning in data and have little information. The data does not resonate with the movement of the business but is
grouped into the functions of the organization. Luxury Ledger Network will give back confidence to brands when it
comes to the integrity of their supply chain data with immutable entries, consensus-driven time stamping, audit
trails and certainty about the origin of data all contribute to robust data management practices. Beyond data integ-
rity (which is a major component), the split data layer that blockchains introduce creates a new set of capabilities
for AI capabilities and solutions.
5.5 Digital Asset Registry
The Asset Registry integrates with brands’ supply chains and pertinent product data is securely decentralized and
globally accessible. Backed by IPFS, Ethereum and EOS public blockchains, product data sits in a secure,
immutable, shared layer that reflects changes in real time. Consumers benefit from guaranteed trust and authentic-
ity backed by immutable and transparent blockchain records.
5.6 Marketplace
Online luxury and retail sales are expected to triple as a proportion of the total global sales by 2021 to several trillion
dollars. In addition to decentralizing product data from brands’ supply chains to a globally accessible asset registry,
Luxury Ledger Marketplace ensures global commerce with trust, transparency and authenticity. The marketplace
mitigates risk of counterfeiting and fraud in primary and secondary markets.
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Deploying Enterprise and Public Hybrid Blockchain Networks
6.1 Introduction to Consortium, Private and Public Blockchain Networks
Consortium blockchain networks provides a hybrid between the “low-trust” provided by public blockchains and the
“single highly-trusted entity” model of private blockchains, whereas private blockchain can be more accurately
described as a traditional centralized system with a degree of cryptographic auditability attached. Luxury Ledger
has selected the consortium, hybrid private/public blockchain integration as the optimal solution for the luxury and
retail industry. The consortium network approach assures that any luxury and retail organization can adopt our
network with interoperability across market, regulatory and geographic boundaries. The consortium blockchain
network is built on Hyperledger technologies with a modular, extensible and secure design philosophy resulting in
keeping enterprise ledgers distributed and ensuring smart contracts remain safe.
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The consortium blockchain model is precisely aligned with our mission, as the model offers many of the same
benefits of a private blockchain but operates under the management of a group instead of a single entity. This
collaborative sharing of processes (on need to know basis and where applicable with appropriate compliance stan-
dards) benefits the luxury and retail industry holistically. We aspire to provide full-service Hyperledger technolo-
gies with enhanced features and deployments to brands and enterprises in the luxury and retail industry. Hyper-
ledger represents a robust open-source community as a result of collaboration and contributions from the follow-
ing organizations: IBM, Intel, Amazon Web Services, Microsoft, Bitwise, Cloudsoft, Ericsson, Hacera, Huawei, R3,
T-Mobile, and several independent engineers.
Luxury Ledger Network deployments are inherently distributed, decentralized, automatically synchronized, secure
and transparent.
Secure:
Transaction and provenance data is stored after com-
putation and hashes are generated. The data is
immutable, and the ledger is “append only.”
Transparent:
Transaction and provenance data recorded on the
blockchain ledger is transparent to each node, with
full real-time audit capability.
Decentralized:
Transaction and provenance product data is stored on
every single peer and no one can alter it. The hash of
product data is generated to make mutability impossi-
ble. A digital fingerprint of physical product is created
and distributed. The blockchain network is fundamen-
tally resilient and has no-single vulnerable point of
attack.
Distributed Ledger:
Every node (administration panel) has access to the
transactional and product data. Consortium partici-
pants select peers who accept or reject whenever a
transaction occurs based on pre-determined consen-
sus logic.
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6.2 Network Architecture (Enterprise)
The Luxury Ledge Network architecture and design philosophy is inspired by Hyperledger blockchain technolo-
gies as part of the Linux Foundation. Our design philosophy includes a modular and scalable approach, interopera-
bility, focus on highly secure solutions, and the development of a vibrant and easy-to-use Application Program-
ming Interface (API).
Luxury Ledger promotes an enterprise-centric scalable, modular and secure framework for building enter-
prise-grade distributed ledgers. Luxury Ledger has distinguished the following detailed business blockchain com-
ponents:
Coherent layer: Identity Services:
Responsible for generating an agreement on the order Allows organizations to establish trusted roots during
and confirming the accuracy of a set of transactions the creation of blockchain instances, registration and
that make up the block. identity registration, or system entities during the
operation of the network, and to manage changes
Smart Contract Layer: such as deletions, additions, and reminders. Also, it
Responsible for processing transaction requests and provides authentication and authorisation.
determining if a transaction is valid when executing
the business logic. Policy Services:
Responsible for managing the policies of various
Communication Layer: system rules, such as approval policies, consensus
Responsible for peer-to-peer message transport policies or group management rules. Interaction and
between the nodes that participate in a shared ledger dependence of other modules to implement different
instance. strategies.
Data Store Abstraction: APIs:
Allows different data-stores to be used by other mod- Enables clients and applications to interface to block-
ules. chains.
Crypto Abstraction: Interoperation:
Allows different crypto algorithms or modules to be Supports the interoperation between different block-
swapped out without affecting other modules. chain instances.
Our enterprise deployments are approached with modularity in mind. This modularity allows companies and
consortiums to make optimal decisions suitable for their organizations. Luxury Ledger Network simplifies enter-
prise blockchain deployments by separating the core system from the application domain. Luxury Ledger’s core
design allows brands to choose the transaction rules, permissioning, and consensus algorithms that support their
unique business needs. Luxury Ledger’s software architecture supports a clean separation between the core
blockchain logic (i.e., the consensus logic) and the application logic to validate transactions. The consensus engine
takes care of the process to propose and commit new blocks on the chain.
At the heart of The Luxury Ledger Network is a distributed ledger that records all the transactions that take place
on the network. The blockchain ledger is described as decentralized because it is replicated across many network
participants, each of whom collaborate in its maintenance. It is important to note that decentralization and collabo-
ration are powerful attributes that mirror the way brands exchange goods and services in the real world. In addition
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Deploying Enterprise and Public Hybrid Blockchain Networks
to being decentralized and collaborative, the information recorded to the Luxury Ledger Network is append-only,
using cryptographic techniques that guarantee that once a transaction has been added to the ledger it cannot be
modified. This property of immutability makes it simple to determine the provenance of information because
participants can be sure information has not been changed after consensus. Furthermore, consensus is a process
of keeping the ledger transactions synchronized across the network participants. This ensures that the ledgers
update only when transactions are approved by appropriate parties and in appropriate order
Luxury Ledger Blockchain is designed with a modular consensus interface and a modular transaction processing
platform to accommodate different threat models, deployment scenarios, and smart contract languages. To meet
the needs of enterprise deployments, Luxury Ledger supports network permissions at the peer-to-peer layer.
6.3 Hyperledger Composer and Fabric to Model Enterprise Networks
We leverage Hyperledger Composer as an open source development toolset and framework that further helps us
to deploy robust enterprise networks at both speed and scale. Hyperledger Composer is akin to a complier of
Hyperledger Fabric. In Composer, we are able to define our business network, and all respective transaction and
chain code logic. The business network logic is then first tested on Composer playground before moving forward
to production scale deployment.
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Hyperledger Composer simplifies business application development for our clients, and we use it to create the
Business Network Definition for brands and organizations comprised of the following files:
1 3
Model.cto file is created that includes the organiza- Access Control.acl file governs the read and write
tion’s Participants, Assets and Transactions permissions, segregation of duties of different partici-
pants over the supply chain network
Participant: Brands, suppliers, retailers, insurers
and any commercial entities interacting within the
Luxury Ledger Network. 4
Assets: Luxury and retail goods, gemstones, wines
etc. Query.qry file enables manipulation of product data
Transaction: buying or selling of goods and services, such as price, origin, provenance record, IoT data etc.
any commerce or business logic within the supply
chain. 5
2 Business Network Archive .BNA file is created upon
completion of the above Business Network Definition.
Script.JS file contains the business logic inclusive of BNA file ispackaged, exported and integrated with
validation and verification of conditions in supply chain
transactions
Web Browser/Node.JS: Enterprise clients can access Luxury Ledger web dApp via REST server that automatically
generates Open API (Swagger) for front-end and Node.JS for back-end.
Five main components of Hyperledger Fabric:
Decentralized peer-to-peer (P2P) network for sending and receiving messages between nodes
Distributed log which contains an ordered list of transactions
Smart contract logic layer for processing transaction content
Distributed state storage
Consensus algorithm
With control list access to the Luxury Ledger Network, nodes can control the following;
Connection and synchronization with the current network state
Consensus messages and participation in the consensus process
Submission of a transaction to the network
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6.4 Luxury Ledger Blockchain, Ethereum and Hyperledger Compatibility
Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed with-
out any possibility of downtime, censorship, fraud or third-party interference. “The core idea was simple: a block-
chain with a built-in turing-complete programming language, allowing users to build any kind of applications on top.”
- VitalikButerin
At Luxury Ledger, we aim to digitize vital B2B and B2C supply chain product data to a decentralized asset registry
that cryptographically records and tracks product provenance on the Ethereum blockchain. Non-Fungible Tokens
(NFT) are used to establish authenticity records that are uniquely identified and paired to physical assets. The
non-fungible token remain associated with the product until the specific expiration date or a "final event" is realized
as defined by purchase, delivery or any other event in the product lifecycle. For enterprise deployments using
Hyperledger Fabric, Luxury Ledger leverages the Hyperledger Burrow EVM for Ethereum blockchain integration.
For deployments using Hyperledger Sawtooth, Luxury Ledger leverages Sawtooth-Ethereum (SETH) integration
project to extend Ethereum interoperability. EVM (Ethereum Virtual Machine) smart contracts can be deployed to
Luxury Ledger Network using the SETH transaction family. Currently, SETH and Hyperledger Burrow have made it
easier to port existing EVM smart contracts and dApps that depend on them to Hyperledger projects. This has been
primarily accomplished by replicating the Ethereum JSON RPC API. This allows Luxury Ledger’s native ERC-20 and
ERC-721 tokens to be interoperable with our enterprise Hyperledger deployments for our clients.
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6.5 Inter Planetary File System (IPFS)
IPFS shows promise in being a crucial piece of a new decentralized technology stack and reduce our on-chain
storage costs. IPFS seeks to create a permanent and distributed web and is a viable solution to store “off chain”
data. At its core it is a versioned file system that can store files and track versions over time. IPFS uses a content-ad-
dressed system instead of HTTP’s location-based system. Instead of using a location address, IPFS uses a repre-
sentation of the content itself to address the content. This is done using a cryptographic hash on a file and that is
used as the address. The hash represents a root object and to store data, IPFS uses a Distributed Hash Table, or
DHT. Saving data on IPFS provides a unique hash. Instead of storing the data on the smart contract, we’ll only store
the hash on the contract and are consequently able to use the unique hash to retrieve the relevant data. Because
of the similarity in their architecture, IPFS and blockchains can work well together. This model allows for easy
storage and access of blockchain data through IPFS, allowing Luxury Ledger users to seamlessly interact with
multiple blockchains including Hyperledger, Ethereum and EOS chains. We believe IPFS has the potential to
connect all these different blockchains in a way that’s similar to how the web connects all websites together.
6.6 Blockchain Database using BigchainDB
Luxury Ledger plans to integrate BigChainDB as the blockchain database component of our overall decentralized
tech stack. BigchainDB can store data of any kind and is designed to be particularly good for storing product regis-
trations and transfers. BigchainDB offers blockchain properties (e.g. decentralization, immutability, owner-con-
trolled assets) and database properties (e.g. high transaction rate, low latency, indexing & querying of structured
data). BigchainDB will primarily be used for large enterprise deployments that require high transaction rates, low
latency and a robust data repository for high amounts of organization’s data.
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IBM Cryptographic-Anchors
Luxury Ledger is proud to partner with IBM in deploying IBM Crypto Anchor technology for brands and global com-
merce. We are committed in providing a revolutionary advancement in asset tracking and anti-counterfeit solu-
tions. Adopting cryptographic anchors within the Luxury Ledger Blockchain enables comprehensive support in the
ability to tag and monitor physical goods and transmit the associated data efficiently. This synergy allows products
to be tracked throughout the supply chain, assuring full data integrity and product provenance. Blockchain tech-
nology and cryptographic anchors will ensure a product's authenticity, from the point of origin to the hands of the
consumer. We believe crypto-anchors are superior technology than current RFID and NFC chips. They are the
world’s smallest computers to date, smaller than a grain of salt; contains several thousand transistors and will cost
less than .10 cents to manufacture; and can monitor, analyse, communicate and even act on data. Luxury Ledger
intends to be an early adopter and promoter of this new technology in enterprise and consumer applications.
Crypto-anchor technology authenticates a product’s origin and contents, ensuring it matches the record stored in
the Luxury Ledger Blockchain. Collectively, brands are able to detect asset location, ownership, management and
supply chain conditions at all times. With this crucial data, organizations can further optimize their supply chain
operations, from just-in-time planning and inventory management to conflict resolution, waste reduction and quali-
ty control. The most versatile aspect of crypto-anchors and verifiers is that it will produce data and information that
is easily downloadable to any smart phone so that a consumer could potentially scan a shop window and immedi-
ately access huge amounts of data related to products’ supply chain and product authenticity.
“Soon, Cryptographic anchors such as ink dots or tiny computers smaller than a grain of salt —will be embedded in
everyday objects and devices. They will be used together with distributed accounting blocking technology to guarantee
the authenticity of the object starting from its point of origin until it gets to the customer's hand. These technologies
pave the way for new solutions for the protection of food, the authenticity of manufactured components, genetically
modified products, identification of counterfeit objects and provenance of luxury goods”
Arvind Krishna (Head of IBM Research).
From raw materials to distribution to after-sale support, understanding the location and flow of products within the
supply chain is critical to maximize efficiency. Today’s consumers demand transparency on where and how prod-
ucts are made. And regulators around the world require information about supply chains—with penalties for
noncompliance. Beyond the demand for information, complex supply chains depend on trust to function right. But
distrust between organizations has historically discouraged them from sharing or relying on shared information.
Luxury Ledger Blockchain can remedy that with a shared, permission record of ownership, location, and move-
ment of parts and goods. That shared record can increase efficiency, transparency, and trust for brands, suppliers,
retailers and consumers.
“We as consumers buy things, and somethings we pay a premium to make sure this is really a particular gem grade or
really an extra virgin olive oil or really a $1,000 bottle of wine. What we can do at the point the oil, gem or product is
grown or developed, is record that and send it to a blockchain.”
Donna Dillenberger, IBM
7.1 IBM Cryptographic Verifier
IBM cryptographic anchor verifier (software) complements IBM developed crypto anchors (IoT hardware) to distin-
guish between real and fake goods, and to collect, analyse and verify supply chain data. The smartphone’s camera
turns the device into a scanner with the potential to extract immense value from every layer of a supply chain. The
verifier can accomplish this by merely downloading a smartphone app developed by IBM itself. The verifier gener-
ates relevant provenance data as it moves through the product journey in the supply chain. Provenance data needs
25 https://luxuryledger.io/You can also read
